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Thread: China's prowess has been overrated?

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[quote=APAULT,272783]On Iceberg's article: China's power comes from its mass and pace of growth.  China is generating NEW demand which is fuelling the world.

So China has a copycat economy...who cares if that is the nmost efficient way of doing things.  In fact, market principles recommend  the most cost effective approach.  Japan used to be criticised for the same thing, but it became wealthy.  It faltered because it didn't adjust from being copycat and having many business inefficiences.   China has corruption, so do all other countries, but in china the costs of production are so low the corruption costs can be absorbed for now.

So Richenhagen is frustrated - well I can understand that having moved from business process improvement in Australia to teaching in a private uni here.  There is little desire to change in many organisations, why should there be when they are reaping such vast profits.  Also remember that this is an overheated economy, the governement want s to slow it.  It is overheated because there is a shortage of resources, one of which is skilled management.  In private uni's pensioned beaurocrats have been dusted off and made heads of departments.  They are good at old protocol and filling forms (but don't mention the dreaded C word (computer..oh I said it!)).

Japan failed to change when it could no longer rely on copying and having cheap labour and the economy slumped.  China has the possibility of failing too.  It must beocme innovative, it must increase employee skilll levels and welfare for staff; in general, it must adopt 'world's best practice' instead of saying we do it the Chinese way (that is only valid if it is the best way).[/quote]

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